Understanding the Difference Between a Due Diligence System and Statement Under EUDR

As the EU Deforestation Regulation (EUDR) moves closer to implementation, compliance is becoming a major operational challenge for businesses trading commodities such as cocoa, coffee, soy, palm oil, rubber, cattle, and wood.

At the centre of EUDR are two closely linked concepts: the Due Diligence System (DDS) and the Due Diligence Statement. While often confused, they serve very different purposes.

The Due Diligence System is the internal process companies use to manage compliance. It covers how businesses collect supply chain data, assess deforestation risk, and take action where risks are identified. This includes gathering geolocation data, supplier documentation, and verifying products are both legal and deforestation-free.

The Due Diligence Statement, on the other hand, is the formal declaration submitted through the EU registry confirming that due diligence has been completed for a shipment. Each statement generates a reference number required for customs and supply chain documentation.

In simple terms, the system is the process behind compliance, while the statement is the proof that the process was carried out.

Although EUDR obligations begin from December 2026 for larger companies and June 2027 for smaller businesses, preparation cannot wait until the deadline. Businesses need time to build reliable processes, improve supply chain visibility, and ensure data quality.

EUDR is ultimately shifting compliance from a periodic task to a continuous, data-driven responsibility across the supply chain.

If EUDR is a pressing concern for your company, do not hesitate to get in touch with our International trade team at international@gmchamber.co.uk.